Jim Hansen, regional president of PNC Bank in north Alabama, shared his thoughts on… more

That presents some tough questions about whether to close or consolidate branches, and it could be one reason the oft-predicted demise of brick-and-mortar branches hasn’t yet come to fruition in the Magic City.

That’s not to say Birmingham banks haven’t made some strategic closure decisions. For instance, PNC (NYSE: PNC) recently announced plans to close a Trussville office due to the shifts in consumer habits.

PNC spokeswoman Amy Vargo said the Pittsburgh-based bank noticed its customers today are using branches differently than in the past.

“They are opting for other means of transacting with us by utilizing more convenient ways, such as online and mobile channels and advanced ATMs,” she said.

Jim Hansen, regional president of PNC Bank in north Alabama, said in a post-acquisition environment, it’s important to take a look at how the bank can most effectively and efficiently serve its clients.

PNC, which gained a significant presence in Birmingham with its recent acquisition of RBC Bank, has 17 branches in the metro area and $945.2 million in local deposits.

But despite similar closures in recent years by other local institutions, especially following acquisitions, the number of branches in the Birmingham area hasn’t dropped off.

According to the FDIC, banks had 356 offices in Alabama on June 30, 2012.

That was actually up from the pre-recession total of 343 in 2007.

David Splawn, owner of Splawn & Ward Associates LLC, said the challenge for banks is that they want people to use electronic channels for transactions because it’s a cheaper operating model. However, they still want the interactions with customers for cross-selling other products and services.

“If the customers aren’t coming into the branches, they don’t have the opportunities for cross-selling that they had in the past,” he said. “They have to be creative about making opportunities for that cross-selling.”

Splawn said banks will continue to close branches that are not producing new sales opportunities and enough revenue, but at the same time, open branches in other parts of town that will be smaller with fewer staff.

“In the past, branches were bigger and more expensive and have been the primary source for all banking activities,” he said. “Now, they’ve got a different role. Today, they’ll be more retail oriented and less museum.”

Other banks in the metro area, like Birmingham banking giant Regions Bank, have also reduced some of their real estate space in an effort to boost efficiency.

Scott Peters, head of consumer services for Regions Financial Corp., (NYSE: RF) said in a previous interview with the Birmingham Business Journal, that the nature of branches will change over time with a focus on advising customers, opening accounts and handling more complex transactions as customers are introduced to new banking channels.